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The Early Years Alliance has issued a comment following reports that the Chancellor Jeremy Hunt will confirm in his speech at the Conservative Party Conference that the national living wage will rise in April from £10.42 to at least £11 an hour

Commenting, Neil Leitch, CEO of the Early Years Alliance, said: 

“While we absolutely support the principle of all staff receiving a fair and reasonable wage, the fact is that without adequate government funding, this increase in the national living wage is likely to spell disaster for the early years. 

“With salaries accounting for around three-quarters of overall costs in early years settings, and with so many early years professionals on or near the national living or minimum wage, any increase in statutory wage requirements will always have a huge impact on overall delivery costs in the sector. And yet, despite this, over the last six years, average early years funding rates have increased by just 14%, compared to a nearly 40% rise in the national living wage over the same period. 

“There is no question that those working in the early years are educational professionals who absolutely deserve a wage that reflects the value of the work that they do – but unless the government ensures that funding for the sector rises in line with wage increases, what should be a positive development for the sector could end up marking the final nail in the coffin for settings across the country.”